On June 23, 2015, the Securities and Exchange Commission (SEC) charged two companies with unregistered broker activity related to EB-5 visa investments. SEC alleged that the companies brokered more than $79 million in EB-5 investments by acting as unregistered brokers. The companies allegedly used their website to solicit EB-5 investors and promised to help investors choose the right regional center to invest in. The companies allegedly directed the investors to the same handful of regional centers which paid them commission of about $35,000 per investor once USCIS approved the investor’s EB-5 petition.
The companies did not admit or deny the allegations when they settled the charges. They agreed to be censured and to cease and desist from committing or causing similar violations in the future. They also agreed to administrative proceedings to determine whether they should be ordered to return their allegedly ill-gotten gains, pay penalties or both based on their violations.
Learn the important takeaways from these charges for your company.